Regulatory

12 Months Ended

Dec. 31, 2024

Broker-Dealer [Abstract]

Regulatory

Regulatory

We operate in a highly regulated environment and are subject to capital requirements, which may limit distributions to the Company. Forge Securities LLC ("Forge Securities"), a wholly-owned subsidiary of the Company, is subject to SEC Uniform Net Capital Rule (Rule 15c3-1) which requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as defined, shall not exceed 15 to 1. As such, Forge Securities is subject to the minimum net capital requirements promulgated by the SEC and has elected to calculate minimum capital requirements using the basic method permitted by Rule 15c3-1. As of December 31, 2024, Forge Securities had net capital of $14.4 million which was $13.8 million in excess of its required net capital of $0.5 million.

Forge Trust Co. ("FTC"), a wholly-owned subsidiary of the Company, is subject to South Dakota state trust regulatory requirements. South Dakota state legislature 51A-6A-19.1 requires public trust companies registered within the state boundaries to maintain a minimum capital balance of $200,000. The director may require that the trust company have more capital than the amount specified if the director determines that the amount and character of the anticipated business of the trust company and the safety of its clients so require. South Dakota state legislature 51A-6A-19.2 requires public trust companies to pledge funds for the security of the trust creditors. An examination as of March 31, 2021 determined that FTC's risk profile and current account and asset levels supported an increased minimum requirement to maintain a capital position of no less than $2.0 million and a pledge for South Dakota trust powers of no less than $1.0 million. FTC had $1.1 million pledged on behalf of trust creditors as of December 31, 2024; the pledge is reported in restricted cash on the consolidated balance sheet. As of December 31, 2024, FTC's capital and pledge levels exceeded the minimum mandates.